Skipton slashes SVR on mortgages

Wednesday, 16 January 2008 12:00

Skipton Building Society has reduced the standard variable rate (SVR) on its mortgages to 6.95 per cent.

The reduction, which takes effect from January 21st, comes as it reduces interest rates on its savings accounts.

The building society claims the cuts put its rates among the lowest of any of the UK's top ten building societies.

According to Skipton, the SVR fall amounts to 0.74 per cent less than many other high street lenders.

John Goodfellow, chief executive of Skipton Building Society said: "With the lowest SVR of any top ten building society - which is also among the lowest in the entire industry - our borrowers have consistently received a fair deal.

"And with nine times more savings accounts than mortgages, it's also worth pointing out how our investors have benefited from our delaying these changes."

The move follows disappointment that many lenders had failed, following December's base rate cut by the Bank of England, to alter their SVRs. Prime minister Gordon Brown last week blasted lenders for their lack of action in this area.

According to the Council of Mortgage Lenders, 73.3 per cent of mortgages taken out in 2007 were fixed-rate deals while 3.4 per cent were SVR. However, if a homeowner does not remortgage at the end of a fixed-rate deal, their mortgage will usually revert to a lender's SVR.

• Tags:
• products and companies